The responsibilities of the Bank of Ghana (BOG) for the compilation and dissemination of Ghana's balance of payments and monetary statistics are governed by the Bank of Ghana Act of 2002. BOG's legal authority to collect data from various sources including banking and financial institutions, private and public sectors is provided in the Bank of Ghana Act of 2002, the Banking Law of 1989, and the Financial Institutions (Non-Banking) Law of 1992.

Regarding the responsibility for data compilation and dissemination, Section 55 of the Bank of Ghana Act of 2002 states that "For the purpose of providing the Board with information necessary for the proper formulation of monetary and credit policies, that Bank shall ... (b) publish a monthly and quarterly bulletin on economic and financial indicators; (c) prepare and publish the annual report of the Bank which shall include statements about monetary policies pursued in the year under review;"

Section 55 of the Bank of Ghana Act of 2002 states that "For the purpose of providing the Board with information necessary for the proper formulation of monetary and credit policies, that Bank shall (a) collect and prepare statistics on money and banking, public finance, prices, wages, production, the balance of payments and any other statistical data that the Board may direct…" Section 56 (1) of the same law states that "For the effective conduct of research, the Bank may request from an institution or a person information relating to money or banking, balance of payments and any other subjects that the Board may direct." Section 17 of the Banking Law of 1989 states that "Every bank shall submit to the Bank of Ghana – (a) not later than twenty-one days after last day of every month, a statement in such form as may be determined by the Bank of Ghana showing the banks' assets and liabilities as at the close of business on such last day; (b) not later than twenty-one days after last day of every month, a statement in such form and details as may be determined by the Bank of Ghana showing an analysis of loans, advances and overdrafts granted by banks...;

With regard to the confidentiality of individual responses, Section 56 of the Bank of Ghana Act of 2002 states that "... (2) Information received under subsection (1) shall be treated with the utmost confidence. (3) A publication for statistical purpose or information obtained under subsection (1) shall not include personal data.

Section 56 of the Bank of Ghana Act of 2002 states that "... (4) A person who fails to supply information requested ... is liable on summary conviction to a fine not exceeding 500 penalty units or to imprisonment for a term not exceeding 2 years or both..." The Banking Law contains similar provision.

BOG provides a brief technical commentary and analysis in its publications bi-monthlyStatistical Bulletin, Quarterly Economic Bulletin and Annual Report. No ministerial commentary is attached to the published data.

The balance of payments (BOP) of Ghana is a statistical statement summarizing the economic transactions of Ghanaian residents with the rest of the world during a quarter. Ghana’s BOP data are compiled on the basis of the standard definitions recommended in IMF's Balance of Payments Manual, fourth edition (BPM4). The Bank of Ghana (BOG) has made a lot of efforts to ensure that Ghana's BOP is presented in a way that broadly conforms to the structure and classification recommended in IMF's Balance of Payments Manual, fifth edition (BPM5). However, the transition of the compilation of BOP data from the methodology outlined in BPM4 to the methodology recommended in BPM5 is not complete.

At present, BOG does not compile data on international investment position.

The balance of payments covers in principle all transactions of the government, household, individuals, and enterprises resident in Ghana with nonresidents. The geographic territory covers the entire country. The comprehensive compilation has been difficult due to lack of survey data from foreign direct investment companies, late data reporting, incomplete data provided by banks on foreign exchange transactions, and incomplete data on services and transfer components.

Quarterly and annual data are compiled and published in millions of US dollars in BOG's bi-monthly Statistical Bulletin. The published data include current account, financial account, errors and omissions, and changes in external short-term position. Data on current account are disaggregated into merchandise trade, services, and transfers. Capital and current transfers are not separately identified and reported and therefore capital account is not separately compiled and published. Financial account includes official sector's borrowing and amortization, private sector's direct and other investments, non-monetary short-term flows, banking sector and other external accounts. Changes in external short-term position include Use of Fund Credit, other reserve changes, and exceptional financing.

The classification of accounts used in the presentation of Ghana's BOP data is based on the standard components recommended in BPM4. BOP data published in BOG's bi-monthly Statistical Bulletin are presented as follows:

Transactions are valued at market price wherever possible. Exports of goods are valued on a f.o.b. basis. Since CEPS import data are collected on a c.i.f. basis, an adjustment factor of 9 percent is applied to non-oil imports and 2.4 per cent to oil imports to obtain f.o.b. value.

The balance of payments data are compiled and disseminated in millions of US dollars, which is the main currency used in Ghana's foreign currency transactions and trade settlement. For data on foreign reserves, the market exchange rate is used for conversion purposes when compiling annual data and the accounting exchange rate is used when compiling quarterly data. The accounting exchange rate is derived by BOG's Treasury Department in collaboration with BOG's Budget and Accounts Department on the basis of recent trends in the exchange rate and a projection of the future trend. For import and export data, monthly average interbank (market) exchange rate is used for conversion purposes.

Time of Recording

Exports and imports of goods are recorded at the time of crossing the customs border. Data drawn from administrative records, which are mainly for services, income and transfers, are recorded either at the time of payment or on accrual basis. Similarly, financial transactions are either on a payment or an accrual basis.

The International Finance Office of BOG's Research Department is responsible for the compilation and dissemination of Ghana's balance of payments statistics. Data required for the compilation of BOP estimates are obtained from a number of institutions and agencies, including the Customs, Excise and Preventive Services (CEPS), the Ghana Cocoa Board, a number of ministries and agencies of the Government of Ghana, and the depository corporations. Some source data are obtained through periodic surveys of the corporate entities that have constant transactions with nonresidents. BOG compiles and publishes quarterly and annual data in its bi-monthly Statistical Bulletin. Annual data are provided to IMF's Statistics Department for publication in International Financial Statistics and Balance of Payments Statistics Year Book. The published data are presented in millions of US dollar.

The comprehensive compilation has been difficult due to lack of survey data from foreign direct investment companies, late data reporting, and incomplete data on services components.

Merchandise Goods: The major source of foreign trade data in Ghana is the customs records of the Customs, Excise and Preventive Services (CEPS). The Bank of Ghana processes the CEPS data with a new data capturing system, the Ghana Community Network (GCNet), to capture customs data collected by all major custom offices throughout the country.Supplementary information is obtained from the major exporters, such as the Ghana Cocoa Board and the Volta River Authorities (VRA) that are required to report their exports directly to BOG, and from the Ghana Export Promotion Council (GEPC) which is responsible for the collection and dissemination of non-traditional export data. For crude and refined oil imports, the oil companies report the data directly to the BOG on a monthly basis; the Volta Aluminum Company (VALCO) also reports monthly data on aluminum imports directly to BOG. VRA produces and reports data on both electricity exports and imports. Because of Ghana's heavy dependence on oil imports, import data are classified into non-oil and oil imports. Further classification into major economic cateogires is also done by the BOG.

Services: Travel data are obtained on a quarterly basis from the Ghana Tourist Board. They are derived from the estimates on tourist expenditures and number of visitor arrivals.

Income: Data on compensation of employees are not currently collected; data on investment income are not up to date and the estimates are used.

Current transfers: Data on official inward transfers are obtained from the offices of the international organizations such as the World Bank and the United Nations Development Program (UNDP), and the ministries, departments and agencies of the Government of Ghana. Data on private transfers are derived from the surveys of financial institutions conducted by BOG's Banking Supervision Department.

Direct investment: Data on foreign direct investments are derived from the records of the Ghana Investment Promotion Centre, the Ghana Minerals Commission, the Tourist Board, and the Ghana Energy Board. These institutions are responsible for coordinating and monitoring investments in their respective sector. Divestiture receipts from the sale of government’s divested enterprises are derived from the Ministry of Finance and Economic Planning (MFEP) and the Divestiture Implementation Committee as well as from BOG's records. Comprehensive information will be collected through a survey on capital flows into Ghana that is planned to be conducted in 2007. This information will be used to broaden the coverage of foreign direct investment, portfolio and other investments in Ghana.

Portfolio investment: No data are currently collected on portfolio investment.

Other investment: Included are mainly data on the government's foreign assets and liabilities obtained from the records of BOG and MFEP. Data on external debt including all government and government guaranteed debt are provided by MFEP's Aid and Debt Management Unit (ADMU), supplemented by the information from the World Bank and other creditors. Data on liabilities to IMF are from BOG's records. Data on private sector are collected through surveys of a limited number of companies. Data include loan disbursement and repayments during the period and also cover changes in private sector's claims on and liabilities to nonresidents.

Historical data on merchandise trade are compiled mainly from CEPS data. The information on the customs declaration forms is electronically captured at the customs designated entry points using the GCNet system based on the Harmonized System. The data from the various border and designated entry points are aggregated at the head office of GCNet. The GCNet system captures about 95 percent of total merchandise trade. Supplementary data are obtained through periodic surveys. At the beginning of each year, the major traditional exporters are requested to produce the estimates of volumes and value of their products for the coming year and to submit monthly export data to BOG. BOG reviews the data and makes necessary adjustments when the final data become available. Data on exports of non-traditional commodities are obtained on a quarterly basis from the Ghana Export Promotion Council (GEPC). Currently, an adjustment factor of 9 percent is applied to non-oil imports and 2.4 per cent to oil imports to obtain f.o.b. value.

Services:

Transportation: Freight and insurance are calculated as 9 percent of total c.i.f. value of all non-oil imports and 2.4 percent of oil import c.i.f. value. The percentage applied was based on a previous sample survey of customs declaration forms. Credit entries for Other transportation are not up to date and the receipts for services rendered by the airport and seaport authorities are estimated.

Travel: Travel expenditure estimates are based on the sample surveys of departing tourists conducted by the Ghana Tourist Board. However, the same estimate is applied to all classes of visitors including business, personal, and returning Ghanaians.

Other services: Some data on government services are derived from the information provided by the Ministry of Foreign Affairs and BOG on foreign exchange transactions of the international organizations and foreign diplomatic missions based in Ghana. Technical assistance component of foreign aid to Ghana is estimated as a fixed proportion (25%) of loans and grants disbursed during the period.

Income:

Investment income: Data on investment income in the form of interest earning from gross foreign assets of the banking system and interest payments on foreign loans are included in this category. Data on reinvested earnings and undistributed branch profits are not available.

Current transfers:

Credit entries under General Government include official grants from various agencies such as the World Bank and UNDP. Debit entries cover Ghana's contributions to the international organizations and its direct contribution to peacekeeping efforts in other countries. Data on current transfers Other sector are obtained from the commercial banks' statistical returns.

Financial Account:

Direct and portfolio investments: Currently, no surveys of direct investment companies are conducted. Data on foreign direct investments are derived from the information provided by the Ghana Investment Promotion Centre, the Ghana Minerals Commission, the Tourist Board, the Ghana Energy Board, MFEP, the Divestiture Implementation Committee, and from BOG's records.

Other investment: This category includes currency and deposits, trade credits and loans, including foreign loans to the Government of Ghana and loans from IMF. Data on external debt are obtained from the Commonwealth Secretariat Debt Reporting and Management System, which is maintained by ADMU.

Reserve assets:

Data on reserve assets include monetary gold, SDR holdings, reserve position in IMF, deposits with banks abroad, holdings of convertible currency, foreign shares and securities, and other claims on nonresidents.

Data are calculated by taking the difference in stocks at the beginning and end of the period and applying an accounting exchange rate to translate into flows in US dollar.

Quarterly data are published in BOG's bi-monthly Statistical Bulletin within three months after the end of the reference quarter; annual data are published within four months after the end of the reference year.

A limited number of sources are available to support cross-check and assurance of reasonableness. These include export data published annually by the Ministry of Trade and Industry in the Ghana Export Bulletin, trade statistics published by GSS in the Ghana External Trade Statistics, data on partner country trade and reserve assets published in IMF’s Direction of Trade Statistics and International Financial Statistics, respectively.

BOG compiles BOP data based on the BPM4 guidelines. The data covers in principle all transactions of the government, household, individuals, and enterprises resident in Ghana with nonresidents. However, some data on investment income, travel, private transfers, and direct investments are not available; therefore, their estimates are often used. Published data include merchandise trade (imports and exports), merchandise trade balance, services, and transfers, current account balance, financial account, changes in external short-term position including Use of Fund Credit, other reserve changes, and exceptional financing.

The Bank of Ghana Act of 2002 was promulgated and repealed the Bank of Ghana Law of 1992, giving the Bank of Ghana more autonomy in the conduct of its daily operations. New Banking Law has been drafted and submitted to the Parliament for adoption. This new law is aimed at, among other things, clearly defining the statutory obligations of banks and making the relevant provisions consistent with those prescribed by the Bank of Ghana Act of 2002.

Balance of payments

In 2003, the ASYCUDA software used by CEPS was replaced by a new data capturing system, the Ghana Community Network (GCNet), to capture customs data collected by all major custom offices throughout the country via electronic customs declarations.

Include the prime rate determined by the Monetary Policy Committee of BOG in the table of interest rates published in BOG's bi-monthly Statistical Bulletin.

Publish GSE All-Share Index in BOG's bi-monthly Statistical Bulletin.

Balance of payments

Establish an inter-agency working group on balance of payments statistics comprising BOG, GSS, MOFA, Ghana Tourist Board, and MOTI to strengthen the coordination and collaboration in data collection and compilation, and to set up a register of foreign direct investment companies in Ghana to facilitate the collection of data on investment flows.

Using legal authorities established by the Bank of Ghana Act of 2002, conduct key surveys to obtain data that are currently unavailable and use these survey data to improve BOP coverage and presentation as recommended in BPM5 with special emphasis on the distinction between current transfer and capital transfer, reporting of capital account, and other changes from BPM4.

Develop and introduce the International Transaction Reporting System to banks to obtain data on the international transactions carried out through the banking system for the BOP statistics purposes.

Apply the concept of residence to distinguish between residents and nonresidents and the transactions of Ghanaian residents with nonresidents and only those claims on and liabilities to nonresidents should be included in the BOP compilation.

Incorporate any major changes in classification and coverage into the BOP time series to ensure consistency and comparability of the data over time.

Provide training to BOP staff in the methodology of IMF's Balance of Payments Manual, fifth edition, and brief the institutions and agencies supplying source data on BPM5 framework, concepts and definition, and the importance of BOP statistics.

Conduct remaining key surveys to obtain data that are needed to improve the BOP coverage and presentation as recommended in BPM5.

Complete the transition of BOP data compilation and presentation from the methodology outlined in BPM4 to the methodology recommended in BPM5 and publish BOP data with component details according to BPM5.

Compile and publish data on Ghana's International Investment Position with component details according to BPM5.

Continue to provide training to the compiling staff in BOG and other institutions and agencies in the methodology of the IMF's Balance of Payments Manual, fifth edition.

There is need for technical assistance to implement the plans for improvement and train staff in the methodology of BPM5.

Notes:

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